The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has mandated all Ministries, Departments, and Agencies (MDAs) to remit 100 per cent of their internally generated revenue (IGR) to the sub-recurrent account.
The sub-recurrent account is a sub-component of the Consolidated Revenue Fund (CRF), aimed at enhancing revenue generation, fiscal discipline and transparency in government spending.
In a circular dated December 28, 2023, and signed by Edun, he directed “The Office of the Accountant-General of the Federation (OAGF) to create a new Treasury Single Account (TSA) sub-accounts for all federal agencies and parastatals listed in the schedule of the Fiscal Responsibility Act, 2007, and any additions by the Federal Ministry of Finance, with few exceptions”.
Edun said the sub-recurrent account will be credited with inflows from old revenue-collecting accounts based on the new policy’s implementation, with a 50 per cent auto deduction in line with the Finance Act, 2020, and Finance Circular, 2021.
According to the finance minister, all MDAs fully funded by the federal government budget must remit “100 per cent of their internally generated revenue to the Sub-Recurrent Account, while all statutory revenues, such as tender fees and sales of government assets, should be remitted 100 per cent to the sub-recurrent account”.
Subsequently, Edun mandated that self-funded federal agencies and parastatals, not receiving an allocation from the federal government budget, should remit 50 per cent of their gross IGR, including all statutory revenues, to the sub-recurrent account.
“To strengthen the implementation of these directives, the Revenue & Investment Department and the Treasury Single Account Department of the Office of the Accountant-General of the Federation (OAGF) will supervise, monitor, and conduct a monthly review of both old and new accounts.
“This ensures that only approved funds are credited, aligning with the Presidential directives conveyed in a circular dated October 16, 2018,” the circular reads I’m part”, he added.
The finance minister also revealed that the revenue collection TSA Sub-Accounts operated by government agencies for public revenue reception will be inaccessible.
Giving reason for the new development, he said the account will be under the full control of the ministry along with the OAGF.
Also, to enforce compliance, the Ministry of Finance and the OAGF have rolled out appropriate disciplinary actions and sanctions against accounting officers of any agency or parastatals found in violation of the circular’s content, in line with the Fiscal Responsibility Act.
